Dogecoin 
$0.136431 has captured attention with a striking 1 billion DOGE whale purchase in 24 hours and a $3 million short liquidation. As the price dipped to $0.2009, Dogecoin wrapped up the week with a 10% loss, breaching the 20-day EMA of $0.2129 and the 50-day EMA of $0.206. Analyst Ali Martinez highlighted that such aggressive accumulation might test liquidity at the selling barrier. CoinGlass data reveals that despite increasing derivatives volume, open positions have declined to $3 billion.
Whale Purchases Reshape Market Pressure
The massive purchasing activity by whale addresses marked the largest single-day inflow since November 2024. According to Martinez’s data, these whale investments bolstered the confidence of buyers in both spot and derivatives markets. Despite a rise in daily volume to $4.82 billion, CoinGlass indicates that decreasing open positions have eased leverage pressure. A $3 million liquidation in the short-squeeze zone at $0.208 temporarily weakened sell orders, potentially paving the way for a price rebound.
However, individual investors remain cautious, with sell orders accumulating at $0.208 and $0.228 creating a selling barrier effect. Without continuous new purchases, profit-taking from these regions might drag the price downwards again. On the other hand, a rapid, volume-based recovery might trap leveraged short positions, quickly reversing the trend upwards.
Technical Indicators Highlight Dogecoin’s Potential
The rising broadening wedge formation in the weekly chart previously generated intense volatility between the $0.22 and $0.48 range. Analyst Tardigrade illustrated a similar viewpoint. This range stands out as a critical zone to defend in the short term.
The Relative Strength Index (RSI) stands at 44.7, nearing the oversold boundary. The MACD remains in a negative crossover, while the Chaikin Money Flow stabilizing at -0.01 indicates a weakening of capital outflows. The technical outlook suggests a reduction in selling pressure, yet the market has not decisively chosen a direction.
